Thailand – Second phase of Eco-Car programme to kick off next year

Karthik H, A bit of a car freak and a bike nut, and a fan of trucks and technology too. Expect sharp stories that focus on those four fronts. As always, stay tuned to IndianAutosBlog.com for quick and unassuming updates from across the world.

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Thailand’s aggressive push to get car manufacturers to make the country a small-car hub has been given a lifeline with the Thai government laying down the terms for the second phase of the “Eco-Car” scheme.

The second phase requires OEMs to make minimum investment of around THB 6.5 billion (Rs 1,258 crore), with a minimum capacity of 100,000 cars per year. This number should be achieved within four years from startup. The cars needs to meet Euro V regulations and have a maximum consumption of 4.3 liters/100km, along with maximum CO2 emissions of 100g/km.

Deadline for applications is March 31, 2014. The government will start issuing licenses towards the middle of next year with investments set to begin in 2015.

According to this report, Hyundai, Kia and VW are keen to produce a benefit-laden ‘Eco-Car’ in Thailand. Image – Suzuki A:Wind, Suzuki’s Eco-Car in 2014.

From the government, companies can expect 8-year corporation tax holiday, duty-free import of machinery and local sales incentives. This includes a lower excise duty of 14 percent (12 percent if the car is compatible with E85 fuel)

Ford-Mazda are keen to come on board, along with Honda, VW, Chevrolet, Hyundai-Kia and possibly a Chinese manufacturer as well. Phase I of the “Eco-Car” scheme saw the country netting a healthy THB 28.8 billion (Rs 5,500 crore) from these OEMs.

As a result of the first phase of the programme, launched in 2007, Thailand has a combined production capacity of 635,000 units from just five manufacturers that are Mitsubishi, Toyota, Honda, Suzuki and Toyota.